sophisticated businesses to small family owned businesses,
entrepreneurs and individuals. A large part of her practice is in the
area of product warranty litigation, and she is well versed in the
Uniform Commercial Code, Magnuson-Moss Warranty Improvement
Act, state consumer protection laws and Lemon Law statutes.
20 Brace Road, 4th Floor
Cherry Hill, New Jersey 08034
856.409.5295 Phone
856.354.0766 Fax
cchung@earpcohn.com
www.earpcohn.com
generally is a promise that what you are
selling is of a particular quality and is
being sold without defect. An express
(written or oral) warranty can give you
a competitive edge. It can be used to
improve your company's reputation
and brand, build customer confidence
or promote sales of a new product.
Warranties are common place and are
provided or implied with small and large
purchases. This article aims to shed light
on the oftentimes confusing world of
warranties.
Warranties are of two types: express
and implied. Implied warranties are
unwritten and are implied with the sale
or lease of the product. It is a promise
the product will do what it is meant
to do. There are two types of implied
warranties: the implied warranty of
merchantability and the implied warranty
of fitness for a particular purpose.
The implied warranty of merchantability
is a promise that the product reasonably
expectations. For example, the implied
warranty of merchantability of a car is
it will turn on and run, a refrigerator
will keep food cold, a lawnmower will
cut grass, and a hair dryer will dry hair.
The implied warranty of fitness for a
particular purpose is more specific.
It is a promise that the thing you are
selling will conform to a particular
purpose versus an ordinary purpose.
An example is shoes purchased for
mountain climbing versus shoes for
walking. Implied warranties are governed
by each state's version of the Uniform
Commercial Code ("U.C.C.").
Express warranties can be oral or
written. Our focus here is on written
warranties.
Written warranties are governed by
state laws and the Magnusson-Moss
Warranty Act, codified at 15 U.S.C.A.
2301 to 2312 ("MMWA"), a federal
statute passed in 1975 to protect
consumers and to promote competition.
There is no requirement that you provide
MMWA should be your guide.
The MMWA
the sale of a consumer product, which
relates to the nature of the material
or workmanship of that product, and
which promises that such material or
workmanship is defect free or will meet
a specified level of performance over
a period of time. A writing provided in
connection with the sale of a consumer
product by which the seller promises
it will refund, repair, replace or take
other remedial action if the product fails
to meet the stated specification also
qualifies as a "written warranty."
There are two types of written
warranties: full warranty and limited
warranty.
If your written warranty qualifies as
a "written warranty" under the MMWA
and it covers an item costing more than
$5.00, then the contents of the warranty
must be in a single document, in clear,
easy to read, and easily understandable
language. It must be void of deceptive
and misleading terms. The terms must
be fully and conspicuously disclosed.